A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.) Cash$50,230 Marketable securities (short-term) 55,926 Accounts receivable 23,553 Inventories 32,210 Prepaid expenses 5,736 Retained earnings 121,477 Notes payable to banks (due within one year) 20,000 Accounts payable 5,912 Dividends payable 1,560 Accrued liabilities (short-term) 21,532 Income taxes payable 6,438 The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent. Required:a. Compute Sweet Tooth’s (1) quick assets, (2) current assets, and (3) current liabilities.b. Compute Sweet Tooth’s (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)

Current Assets = These are those Assets which are easily convertible into liquid cash to meet…

Answered: a. Compute Sweet Tooth’s (1) quick…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.)


Cash	$	50,230
Marketable securities (short-term)		55,926
Accounts receivable		23,553
Inventories		32,210
Prepaid expenses		5,736
Retained earnings		121,477
Notes payable to banks (due within one year)		20,000
Accounts payable		5,912
Dividends payable		1,560
Accrued liabilities (short-term)		21,532
Income taxes payable		6,438

The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent.

Required:

a. Compute Sweet Tooth’s (1) quick assets, (2) current assets, and (3) current liabilities.

b. Compute Sweet Tooth’s (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions